Question: When a $ 1 0 0 0 bond is initially sold at 5 percent coupon yield for 3 0 years, $ 5 0 ( .

When a $1000 bond is initially sold at 5 percent "coupon" yield for 30 years, $50(.05$1,000) interest per year is paid to the buyer of the bend. However, if interent rates decrease to 4 percent for similar bonds issued later on, then the market price of the initial bond will
decrease
increase
slay the same
none of the above
When a $ 1 0 0 0 bond is initially sold at 5

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